Resolution No. 96422
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RESOL-U-TION NO. 9-642
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE ACTIONS TAKEN
REGARDING THE RENEWAL AND/OR PURCHASE OF COMMERCIAL
INSURANCE POLICIES (PROPERTY AND EXCESS LIABILITY),
EMPLOYEE BENEFIT, PUBLIC EMPLOYEE CRIME AND EXCESS
WORKERS' COMPENSATION THROUGH ARTHUR J. GALLAGHER &
CO.
WHEREAS, the City's current Commercial Insurance Program
consisting of a Property Policy (including earthquake and equipment
breakdown), General Liability and first and second excess liability
policies, Employee Benefit and Excess Workers' Compensation insurance
policies expires on July 1, 2008 (collectively, the "Commercial
Policies"); and
WHEREAS, the City's current Public Employee Crime Policy
with Hartford Fire Insurance Company ("Hartford") for dishonesty,
forgery and fraud expires on June 22, 2008 (the "Crime Policy"); and
WHEREAS, the City desired to renew the policies of insurance
to protect the City; and
WHEREAS, the City of Vernon needs to purchase the necessary
Crime Policy before June 22, 2008, and the necessary Commercial
Policies before July 1, 2008; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. Insurance Brokers of California, Inc. ("Arthur J.
Gallagher") to act as the City's broker to structure and obtain the
appropriate insurance coverages for the period June 22, 2008 to
June 22, 2009 (Crime Policy) and July 1, 2008 through July 1, 2009
(Commercial Policies); and
WHEREAS, in order to meet the urgent need for renewal of the
2 Risk Manager submitted the required applications and application
3 renewal forms, subject to ratification by the City Council; and
4 WHEREAS, the City Council of the City of Vernon desires to
5 ratify the actions taken to obtain the necessary insurance coverage
6 for the Crime Policy and the Commercial Policies before expiration;
7 and
8 WHEREAS, the City Council of the City of Vernon has
9 determined that, pursuant to the provisions of subsection (a) of
10 Section 2.27 of the Vernon City Code, it is in the public interest and
11 necessity to ratify the purchase and renewal of the various insurance
12 coverages through Arthur J. Gallagher.
13 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
14 CITY OF VERNON AS FOLLOWS:
15 SECTION 1: The City Council of the City of Vernon hereby
16 finds and determines that the recitals contained hereinabove are true
17 and correct.
18 SECTION 2: The City Council of the City of Vernon hereby
19 ratifies and approves the renewal of the Commercial Insurance Program
20 consisting of a Property Policy, General Liability and first and
21 second excess liability policies, Employee Benefit and Excess Workers'
22 Compensation insurance policies through Arthur J. Gallagher & Co and
23 authorizes the City Administrator, or his designee, to execute any and
24 all documents necessary for the purpose of securing the renewal of the
25 Commercial Policies and to implement and carry out the purposes
26 specified in the insurance renewal on behalf of the City of Vernon.
27 SECTION 3: The City Council of the City of Vernon hereby
28 ratifies and approves the renewal of the Public Employee Crime Policy
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2 Administrator, or his designee, to execute any and all documents
3 necessary for the purpose of securing the renewal of the Crime Policy
4 and to implement and carry out the purposes specified in the insurance
5 renewal on behalf of the City of Vernon.
6 SECTION 4: The City Council of the City of Vernon hereby
7 approves the payment of the annual premium for the Crime Policy in
8 accordance with the terms of the insurance renewal and purchase in an
9 estimated not to exceed amount of $2,172.00.
10 SECTION 5: The City Council of the City of Vernon hereby
11 approves the payment of the annual premium for the Commercial Policies
12 in accordance with the terms of the insurance renewals and purchases
13 in an estimated not to exceed amount of $148,351.00 for the excess
14 workers' compensation, $150,136.00 for the excess liability and
15 approximately $697,000.00 for the property for an estimated total of
16 $995,351.00.
17 SECTION 6: The City Council of the City of Vernon hereby
18 directs the City Clerk, or her designee, to send a copy of this
19 Resolution to:
20 Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
21 Attn. Nasreen Kopecky, Account Manager
22 15 Enterprise, Suite 200
Aliso Viejo, CA 92656
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I SECTION 7: The City_ Clerk of the City of Vernon shall
2 certify to the passage of this resolution, and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 16th day of June, 2008.
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61iGcZ/� e
7 Name: Leonis C. Malburg
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Title: Mayor / -
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ATTEST:
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14 M NUELA GIRON, Ci y Clerk
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- 4 -
ss
2 COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
5 certify that the foregoing Resolution, being Resolution No. 9642, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, June 16, 2008, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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MANUELA GIR N, City Clerk
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13 (SEAL)
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 25, 2008
TO: Willard Yamaguchi, Risk Manager/Chief Deputy City Attorney
FROM• Nelly Giron, City Clerk
RE: Resolution No. 9642 - A Resolution of the City Council of the
City of Vernon Approving and Ratifying the Actions Taken
Regarding the Renewal and/or Purchase of Commercial Insurance
Policies (Property and Excess Liability), Employee Benefit,
Public Employee Crime and Excess Workers' Compensation
Through Arthur J. Gallagher & Co.
Transmitted herewith is a copy of Resolution No. 9642 referenced above,
which was approved by City Council on June 16, 2008.
Thank you.
NG:dr
c: Sharon Duckworth
Avigal Horrow
Karina Rueda
Martha Valenzuela
Resolution No. 9642